Industrial Clusters
1. Definition of industrial clusters....?
2. Objectives
3. Features
4. Advantages
5. Disadvantages
6. In which area which clusters are used.....?
Definition
A geographical concentration of interconnected companies with close supply links, specialist suppliers, service providers, and related industries and institutions; for example, Birmingham-Aston-Wolverhampton-Walsall in the British West Midlands, or the UK met cluster, which extends from Lancashire and Yorkshire to London and south-east Britain.
Industrial clusters arise because of clustering and external agglomeration economies; supportive local social structures and networks of exchange; institutional embeddness; and lowered transaction costs of transport and communications, all interacting with the benefits of existing supply locations in close proximity. Existing business clustering strongly encourages further concentration. Clustered concentrations have significant competitive advantages in global markets.
Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field that are present in a nation or region. Clusters arise because they increase the productivity with which companies can compete. The development and upgrading of clusters is an important agenda for governments, companies, and other institutions. Cluster development initiatives are an important new direction in economic policy, building on earlier efforts in macroeconomic stabilization, privatization, market opening, and reducing the costs of doing business.
Two cluster-related projects are currently underway at the Institute: the Cluster Mapping Project and the International Cluster Competitiveness Project. The Cluster Mapping Project has assembled a detailed picture of the location and performance of industries in the United States, with a special focus on the linkages or externalities across industries that give rise to clusters.
2. Objectives
3. Features
4. Advantages
5. Disadvantages
6. In which area which clusters are used.....?
Definition
A geographical concentration of interconnected companies with close supply links, specialist suppliers, service providers, and related industries and institutions; for example, Birmingham-Aston-Wolverhampton-Walsall in the British West Midlands, or the UK met cluster, which extends from Lancashire and Yorkshire to London and south-east Britain.
Industrial clusters arise because of clustering and external agglomeration economies; supportive local social structures and networks of exchange; institutional embeddness; and lowered transaction costs of transport and communications, all interacting with the benefits of existing supply locations in close proximity. Existing business clustering strongly encourages further concentration. Clustered concentrations have significant competitive advantages in global markets.
Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field that are present in a nation or region. Clusters arise because they increase the productivity with which companies can compete. The development and upgrading of clusters is an important agenda for governments, companies, and other institutions. Cluster development initiatives are an important new direction in economic policy, building on earlier efforts in macroeconomic stabilization, privatization, market opening, and reducing the costs of doing business.
Two cluster-related projects are currently underway at the Institute: the Cluster Mapping Project and the International Cluster Competitiveness Project. The Cluster Mapping Project has assembled a detailed picture of the location and performance of industries in the United States, with a special focus on the linkages or externalities across industries that give rise to clusters.